Elaine Wynn, former wife of casino mogul Steve Wynn, filed on Monday a lawsuit against her ex-husband to regain control over her 10% stake in gambling operator Wynn Resorts Ltd. Ms. Wynn’s stake in the company has been valued at an approximate of $900 million.
Mr. Wynn’s former wife also argued in her lawsuit that she was unrightfully put ouster from the casino company’s board last year.
Ms. Wynn’s stake was restricted in a 2010 shareholders’ agreement, under the terms of which she was prohibited to sell stock without Mr. Wynn’s approval. Her former husband was also given the right to vote over her shares in the company.
Ms. Wynn said in her filing to the Clark County District Court that the agreement was void as Mr. Wynn had breached it. She also accused Mr. Wynn of “reckless, risk-taking behavior” regarding the operation of the casino company he had himself found. Ms. Wynn claimed that Wynn Resorts was managed without the necessary checks and balances and that important information was upheld from the board. According to her, given the way Mr. Wynn has been operating his company, it could eventually be placed into serious risk of harm. Ms. Wynn has been trying to regain control over her stake since 2012.
It could be said that the legal battle between Mr. Wynn and his former wife stems from a 2012 complaint filed after Wynn Resorts forcibly acquired co-founder Kazuo Okada’s shares in the gambling operator at a 30% discount to the official market price. The Monday court filing came as part of Wynn Resorts’ lawsuit against the Japanese businessman.
Mr. Wynn called his ex-wife’s accusations “lies and distortions” that aim at inflicting personal pain on him. He further noted that she has never voiced the issues stated in the latest court filing in the 13 years she has been on the gambling operator’s board of directors and that she fully agreed to the terms of the 2010 agreement.
As for Ms. Wynn, she said that she wanted to void the 2010 agreement so she can retake control over her shares in Wynn Resorts, plan her estate in a manner that would benefit her daughters, and prevent Mr. Wynn from misusing the said agreement to exert control over her life and legacy.
